Strategic Steps to Avoid the Risk of FMD Non-compliance 44/2026 in the Digital Era
JAKARTA - The Ministry of Finance of the Republic of Indonesia has officially issued Minister of Finance Regulation Number 44 of 2026 (PMK 44/2026) which regulates the Requirements and Procedures for the Appointment of Tax Obligors. This regulation issued on July 6, 2026 is a significant evolution in tax administration in Indonesia, which completely replaces the previous framework under PMK 229/2014. This important update is designed to align the tax representation protocol with the new Coretax digital administration system that has just been implemented.
PMK 44/2026 provides a clearer and stricter definition of parties who can legally act on behalf of a legal entity or individual taxpayer. Based on this rule, external tax consultants representing companies must hold a valid Tax Consultant Permit from the Ministry of Finance.
Meanwhile, internal representatives (such as company tax staff, financial controllers, or accounting managers) are now required to have a Registered Certificate (SKT) which serves as an official verification from the government of their tax legal competence. Family members up to the second degree are allowed to represent individual taxpayers without requiring such a certificate of competence.
Responding to this tax management transformation, Irwan Kusumanto, Managing Partner of KKP Kusumanto and Partner and Head of Tax BDO in Indonesia, conveyed his insights regarding operational challenges in this digitalization era.
"The transition to the Coretax era requires a fully digitized workflow and stricter procedural integrity. Special Power of Attorney must now be drafted, authorized, and managed electronically directly within the DJP Coretax portal to facilitate administrative verification. In addition, PMK 44/2026 prohibits appointed representatives from delegating substantive tax tasks to other parties, and confirms that taxpayers remain in absolute legal and financial responsibility for any errors or non-compliance committed by their representatives," explained Irwan, in his statement, Monday, August 3.
Furthermore, this regulation provides a transitional period for business actors. Individuals who currently act as internal representatives of companies and do not yet have a tax certificate, but have a tax certificate or at least a Diploma III diploma in the field of taxation, are still allowed to carry out their functions until the deadline of December 31, 2026. After that date, the obligation to have a tax certificate will be strictly enforced.
Given the increasingly limited time, Irwan Kusumanto reminded the importance of proactive evaluation of the company's tax administration strategy.
"Don't wait until the transition period ends. Managing this compliance change requires careful planning and in-depth regulatory expertise. BDO's professional tax team in Indonesia is ready to help your company through this critical transition period. We offer comprehensive support, ranging from acting as a fully certified Tax Authority, providing guidance on navigating the DJP Coretax portal, developing a compliance strategy for internal teams, to mitigating the risk of absolute obligations based on these updated regulations," concluded Irwan.